A leading Indicator is any measurable or observable variable of interest that predicts a change or movement in another data series, process, trend, or other phenomenon of interest before it occurs. In the business world, leading indicators are often used to predict future economic activity.For example, economists may use measures of housing starts as a leading indicator of economic growth. This is because new home construction requires a significant investment of time and money, so an increase in housing starts typically indicates that businesses and consumers are confident about the future and are willing to make long-term investments.
